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Stocks Softer For a Second Session

EQUITIES
  • Equity markets traded negatively for a second consecutive session on Friday, pressuring futures and putting the e-mini S&P within range of the first key support at the 4446.7 200-dma. Losses were more acutely felt among growth and tech names, putting the NASDAQ-100 lower by as much as 1%.
  • Weakness across global equity markets followed Thursday's red-hot CPI, which keeps the prospect of a protracted Fed tightening cycle top of mind for US investors. This put the tech sector comfortably at the bottom of the S&P 500, with value names outperforming.
  • A recovery for WTI and Brent crude futures helped underpin a rise for the energy sector, explorers and services firms were the main beneficiaries, putting the likes of Baker Hughes, Phillips 66 and Valero Energy higher by as much as 5%.
  • S&P E-minis failed to hold above the 50-day EMA - at 4561.44. This average continues to provide a firm resistance and a clear breach of it is required to suggest scope for a stronger rally that would open 4671.75 initially, Jan 18 high.

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